WASHINGTON: Groupon, the daily deals ecommerce operator which has been struggling since a hot public share offering, said it received a $250 million investment from a private investment fund.
Groupon said it would use the cash infusion from Atairos to boost share repurchases and to revive growth.
“Our partnership with Atairos will help accelerate our transformation while better positioning us to execute on our strategy and mission to build the daily habit in local commerce — which we continued to make progress on in the first quarter,” said Groupon chief executive Rich Williams.
“I am extremely pleased that a respected, long-term oriented partner like Atairos shares our view about the vast opportunity ahead for Groupon.”
Atairos, which calls itself “an independent private company focused on supporting growth-oriented businesses across a wide range of industries,” was launched earlier this year with more than $4 billion in capital and is led by Michael Angelakis, former chief financial officer of Comcast.
Angelakis will join the Groupon board as part of the investment agreement.
Groupon said it would add $200 million to its share buyback plan, a move which could help boost its sagging stock price.
Groupon went public in 2011 amid enthusiasm over its model of offering deals on a variety of products and services.
But it has been struggling amid consumer fatigue in the “daily deals” category. After a debut on the Nasdaq at $20, Groupon shares have been in a tailspin, falling as low as $2.15 earlier this year and closing Friday at $3.92.
In its most recent quarterly results, Groupon posted a net loss of $46.5 million.
Ailing ecommerce site gets $250m infusion
Ailing ecommerce site gets $250m infusion
Saudi Mawani, Arabian Chemical Terminals sign $133m land lease for Jubail port storage tanks
RIYADH: The Saudi Ports Authority, or Mawani, has signed a contract with Arabian Chemical Terminals Ltd. to establish storage tanks for chemical and petrochemical materials at Jubail Commercial Port, with an investment exceeding SR500 million ($133 million) on an area of 49,000 sq. meters.
The project will help enhance operational efficiency and increase handling capacity, in line with the objectives of the National Transport and Logistics Strategy, which aims to consolidate the Kingdom’s position as a global logistics hub.
This step forms part of Mawani’s efforts to strengthen private-sector participation in supporting gross domestic product growth and to reinforce the role of Jubail Commercial Port as a key driver of commercial activity.
The project’s storage capacity will reach 70,000 cubic meters, boosting the competitiveness of the Kingdom’s ports at both regional and international levels.
It aims to develop and expand storage capacity and support the export of chemical and petrochemical materials in accordance with the highest international standards, while strengthening supply chains.
The project includes the establishment and development of specialized facilities for storing and exporting chemical and petrochemical products, as well as the provision of storage and distribution services for local and international imports and exports, in line with global quality and safety standards.
It will contribute to supporting national supply chains, enhancing the Kingdom’s chemical logistics capabilities, and raising operational efficiency and capacity, thereby improving customer competitiveness.
The initiative also supports the objectives of Saudi Vision 2030 by promoting infrastructure development across the energy, industry, and supply chain sectors.
